Abstract
In this paper we shall argue that the main causes of high unemployment m Britain since the mid-sixties, are the level and composition of aggregate demand. We shall argue that structural changes in the economy that have led to a change in the composition of output (from the industrial sector to the services sector) are an important explanation of the high levels of unemployment. Further, we shall argue that the increased unemployment benefits since 1966 do not have a significant effect on the level of unemployment. Our econometric results suggest that although we can highlight the main determinants of unemployment, the relationship is inherently unstable suggesting the need for a more completely specified model of the labour market.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Atkinson, A. B. and Flemming, J. S. “Unemployment, Social Security, and Incentives”, Midland Bank Review, Autumn, 1978.
Bacon, R. and Eltis, W. Britain’s Economic Problem, London: Macmillan, 1976.
Barro, R. and Grossman, H. “A General Disequilibrium Model of Income and Employment”, American Economic Review, March 1971.
Bowers, J. K., Cheshire, P. C. and Webb, A. E. “The Change in the Relationship Between Unemployment and Earnings Increases”, National Institute Economic Review, No. 54, November 1970.
Bowers, J. K. et al., “Some Aspects of Unemployment and the Labour Market, 1966–71”, National Institute Economic Review, No. 62, November 1972.
Brown, R. L., Durbin J. and Evans, J. M. “Techniques for Testing the Constancy of Regression Relationships over Time”, Journal of the Royal Statistical Society (Series B), 1975.
Clark, K. B. and Summers, L. H. “Labour Force Transitions and Unemployment”, Brookings Papers on Economic Activity 1979. No. 1.
Cubbin, J. S. and Foley, K. “The Extent of Benefit Induced Unemployment in Great Britain: Some New Evidence”, Oxford Economic Papers, March 1977.
Department of Employment, “Working Party on the Change Relationship Between Unemployment and Vacancies: Final Report of the Working Party”, Mimeo, 1976.
Department of Employment, “Unemployment and Notified Vacancies—Flow Statistics, D.E”. Gazette, September 1976.
Department of Employment, “The Unregistered Unemployed in Great Britain”, D.E. Gazette, December 1976.
Department of Employment, “Statistics on Long-term Unemployed”, D.E. Gazette, June 1978.
Field, F. (Ed.), The Conscript Army: A Study of Britain’s Unemployed, London: Routledge & Kegan Paul, 1977.
Gujarati, D., “The Behaviour of Unemployment and Unfilled Vacancies: Great Britain, 1958–71”, Economic Journal, Vol. 82, March 1972.
Horowitz, S. A., “A Model of Unemployment Insurance and the Work Test”, Industrial and Labor Relations Review, Vol. 30, No. 4, July 1977.
Lancaster, T., “Econometric Methods for the Duration of Unemployment”, Econometrica, Vol. 47, No. 4, July 1979.
Maki, D. and Spindler, Z. A., “The Effect of Unemployment Compensation on the Rate of Unemployment in Great Britain”, Oxford Economic Papers, Vol. 27, No. 3, 1975.
Marsden, D. and Duff, E., Workless, Harmondsworth: Penguin, 1975.
Mortensen, D., “Unemployment Insurance and Job Search Decisions”, Industrial and Labor Relations Review, Vol. 30, No. 4, July 1977.
Nickell, S., “The Effect of Unemployment and Related Benefits on the Duration of Unemployment”, Economic Journal, March 1979.
Sawyer, M., “Effects of Unemployment Compensation on the Rate of Unemployment in Great Britain: A Comment” Oxford Economic Papers, 1979.
Solow, R. M., “What to do (Macroeconomically) when OPEC comes”, Mimeo 1978 undated.
Spindler, Z. A. and Maki, D., “More on the Effects of Unemployment Compensation on the Rate of Unemployment in Great Britain”, Oxford Economic Papers, 1979.
Copyright information
© 1981 Oxford University Press
About this chapter
Cite this chapter
Junankar, P.N. (1981). An Econometric Analysis of Unemployment in Great Britain, 1952–75. In: Economics of the Labour Market. Palgrave Macmillan, London. https://doi.org/10.1057/9781137555199_14
Download citation
DOI: https://doi.org/10.1057/9781137555199_14
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-55518-2
Online ISBN: 978-1-137-55519-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)